The S&P/ASX 200 Index (ASX: XJO) was sold off this afternoon following broad weakness across all market sectors except for tech stocks. Today, many ASX200 shares in the consumer discretionary sector have received broker upgrades following an anticipated improvement in earnings and benefits from the federal government budget.
ASX200 stocks with share price upgrades
1. Beacon Lighting Group Ltd (ASX: BLX)
Citi has raised the Beacon Lighting Group share price target from $1.50 to $1.80 and retains a buy rating. It predicts that the short term tailwinds from government fiscal stimulus could turn into even longer term gains as spending patterns continue to shift.
Last week, Beacon provided the market with a trading update for the first quarter of FY21 which saw sales increase 24.3%, online sales increase 156% and Q1 underlying NPAT increasing to $8.4 million from $2.2 million.
2. GUD Holdings Ltd (ASX: GUD)
Goldman Sachs has raised the GUD share price target from $14.20 to $14.75 and retains a buy rating. It also upgrades revenue growth forecasts in FY21 by 3.9% due to strong performance in the September quarter.
In GUD’s trading update last week, the business has been experiencing strong sales performance across both auto and water divisions with Q1 sales growing 14% over pcp. This has been driven by the Australian business buoyed by favourable agricultural conditions and rural demand which has more than offset lower demand to tourism dependent export markets.
3. Michael Hill International Ltd (ASX:MHJ)
Citi raised the Michael Hill International share price target from $0.33 to $0.50 and retains a neutral rating. The broker is impressed with the jewellery retailer’s quarterly sales update but remains concerned about its long term growth prospects.
4. Qantas Airways Limited (ASX: QAN)
Macquarie raises the Qantas Airways share price target from $4.25 to $4.95 and retains its outperform rating. It anticipates that the broad travel and domestic tourism recovery could surprise to the upside when borders re-open.
5. Woolworths Ltd (ASX: WOW)
UBS raises the Woolworths share price target from $43.50 to $44.00 and retains its buy rating. It sees current prices as offering significant value-based opportunity. This also coincides with a general lift in both business and consumer confidence in the supermarket giant which are at its highest levels since May.
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Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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